JETRO to Promote Supporting Industries at METALEX Vietnam 2010

It is unsurprising that on June 10, 2010 in the Sheraton Saigon Hotel & Towers, HCMC, Vietnam, Mr.Yoshida Sakae, Managing Director of the Japan External Trade Organization (JETRO), Ho Chi Minh Office, Mr. Nguyen Anh Ngoc, Deputy Director of The Investment & Trade Promotion Centre of Ho Chi Minh City and Ms. Nichapa Yoswee, Managing Director of Reed Tradex, attended a contract signing ceremony for JETRO to officially confirm its co-attendance at METALEX Vietnam 2010, to network with Japanese industrialists to reduce machinery import and urge Vietnamese SMEs to develop higher competitiveness to further stoke Japanese investment, especially considering that Japanese investors are the biggest amid foreigners in investment scale.

"This is a great opportunity for the Japan External Trade Organization (JETRO,) Ho Chi Minh Office to work together to co-stage the 4th "Exhibition on Supporting Industries in Ho Chi Minh City" alongside METALEX Vietnam 2010, which is co-organized by the Ho Chi Minh City Investment and Trade Promotion Center (ITPC) and JETRO. Considering the current economic challenge, a quality international exhibition is a great and cost effective investment tool for industrialists and manufacturers. Sellers use the exhibition as a tool to maintain brand awareness, market expansion, and entry into the desired target groups in a direct manner. Buyers visit the exhibition to see the machinery and technologies from all over the world which will give them ideas to develop and improve their capability and competitiveness. Vietnamese do not have to travel abroad to do this, and have the opportunity to discuss details directly with the technology owners in an atmosphere conducive to business negotiations. The three-day show is expected to draw more than 7,000 visitors," said Nichapa.

Sakae noted that some 1,200 Japanese companies are operating in Vietnam, about half of them in manufacturing. Foreign companies in manufacturing need raw material, parts and subcomponents to make or assemble final products. So they need such suppliers, hence making the Exhibition on Supporting Industries in Ho Chi Minh City very relevant.

2009 Edition Successful

Ms. Nichapa said that "METALEX Vietnam 2009," the 3rd metalworking machinery and technology exhibition closed successfully, with exhibitors expressing satisfaction with the quality of business opportunities and organization of the show, and visitors enthusiastic about the new machine tools and metalworking technologies available. Some 6,659 Vietnamese industrialists from across Vietnam and trade missions from many countries attended the event, with Vietnamese manufacturers having reportedly purchased new technologies to improve production efficiency and cut cost.

METALEX Vietnam 2010 and the 4th Exhibition on Supporting Industries in Ho Chi Minh City will be staged October 7-9, 2010 at the Saigon Exhibition & Convention Center (SECC).

Several countries have confirmed to attend again in international pavilions, including BoI Unit for Industrial Linkage Development (BUILD) Pavilion from Thailand, Singapore Pavilion, UK Pavilion, Japan Pavilion, Turkey Pavilion and JETRO.

METALEX Vietnam is a highly comprehensive machine tools and metalworking technology trade exhibition and conference, where the largest event in ASEAN sees 500 global brands from 25 countries launch innovations to over 7,000 Vietnamese industrialists. Top-level manufacturing executives and industrialists across Vietnam and trade missions from overseas regard the event as a must-attend occasion for its 20 conferences, technology presentations and other special activities, both pre-show and onsite, as well as being a hub of manufacturing innovations, knowledge, ideas, and international business opportunities.

Key On-site Highlights

Electronics Assembly 2010: The International Machinery Expo for Electronics Parts and Components Manufacturing, with unique features as follows: ‧ Surface Mount Technology Equipment and Services ‧ Test and Measurement Equipment and Services ‧ Electronics Manufacturing Services ‧ Electronics Components and Mobile Phone Components ‧ Products Related to Precision Component Parts and Metal Parts ‧ Inspection and Maintenance Instruments and Equipments ‧ Vehicle Electronics Units ‧ Vehicle Communication and Navigation System

HI-TECH Zone: A special showcase of high-tech machinery and technologies from China, Japan, Korea and Taiwan, including hydraulic, press-brake machine, water jet cutting machine and CNC lathe.

Robot Demonstration: The "HI-TECH Zone" with "Robot Demonstration" to unveil extraordinary capacities of "Motoman," an intelligent industrial robot with laser cutting and welding capabilities.

"This is JETRO's first-time participation in METALEX Vietnam. We are confident that Reed Tradex's professionalism and expertise, which is well-accepted in Vietnam, will make this trade fair a real industrial platform between buyers and sellers to meet and create wider business networks, particularly for Japanese investors to expand their businesses in Vietnam," said Sakae.

Over 100 Companies

The JETRO booth will consist of over 100 companies mainly in automobile, motorcycle and electronics parts manufacturing industries, half of which are Japanese companies in Vietnam and directly from Japan, with the other half being local joint ventures.

The JETRO managing director said that Vietnam is a promising country for Japanese companies. Amid the economic uncertainty, Vietnam's GDP can grow by 6.5% in 2010. Some institutes are more opportunistic that the GDP can rise 8%. Everything is booming in Vietnam. Retail consumption rises by 18%. Demand for literacy increases by 15% every year. The total amount of Foreign Direct Investment (FDI) for newly approved projects in 2006 totaled US$9 billion, in 2007 US$ 17 billion, in 2008 US$ 66 billion (in huge steel making and refinery projects), in 2009 US$16 billion and in 2010 US$ 22-25 billion. HCMC alone expects to attract total pledged foreign direct investment of US$ 8.4 billion.

By 2020 Vietnam will become an industrialized country with sufficient supplies of raw materials and basic fuels. For example, Sumitomo will open a steel plate manufacturing hub in Vietnam with production value of US$1 billion. In Vietnam, Japanese companies focus on components (e.g. small motors for the automotive industry's export) and textiles. Vietnam has lower labor cost, and is suitable for marketing- or sales-based i.e. distribution outlets for Japanese products into Vietnam.

Focus on Parts and Accessories

Clarifying the backdrop of the 4th Exhibition on Supporting Industries in Ho Chi Minh City, Nguyen Anh Ngoc, Deputy Director of The Investment & Trade Promotion Centre of Ho Chi Minh City, said that the event focuses on parts and accessories. The participants are Japanese companies who expect to purchase parts and accessories in Vietnam, and Vietnamese companies who expect to provide parts and accessories for Japanese and other companies from Taiwan and South Korean for examples. The exhibits include 2- wheel and 4-wheel vehicle parts; electric and electronic accessories; mechanic parts; metal and plastic outwork (foundry, forging, plastic injection, mould, sheet metal works, plastic processing, plating etc), packaging materials, and other accessories.